As the frequency of e-commerce and transactions conducted via the Internet increases, the use of virtual payment numbers (VPNs) have also increased. Virtual payment numbers generally offer consumers extra flexibility over traditional payment cards by being capable of electronic issuance and distribution, and if the virtual card number is a controlled payment number (CPN) (also known as a limited use number), allowing for the setting of various limits and controls. In addition, virtual payment numbers may often provide additional fraud protection for consumers, such as by being limited to use for a specific merchant, specific time and/or date, within a specific transaction amount, etc. Traditional methods and systems for identifying, distributing, and processing virtual payment numbers and in particular limited use numbers, may be found in U.S. Pat. No. 6,636,833, issued Oct. 21, 2003; U.S. Pat. No. 7,136,835, issued Nov. 14, 2006; U.S. Pat. No. 7,571,142, issued Aug. 4, 2009; U.S. Pat. No. 7,567,934, issued Jul. 28, 2009; U.S. Pat. No. 7,593,896, issued Sep. 22, 2009; U.S. patent application Ser. No. 12/219,952, filed Jul. 30, 2008; U.S. patent application Ser. No. 12/268,063, filed Nov. 10, 2008; and U.S. patent application Ser. No. 12/359,971, filed Jan. 26, 2009; each of which are herein incorporated by reference in their entirety.
However, while virtual payment numbers are often used in e-commerce transactions, many merchants are apprehensive to accept virtual payment numbers for use in in-person or face-to-face transactions. In many instances, virtual payment numbers may not be provided at a point-of-sale via a physical payment card, and may instead be provided to a merchant via non-traditional methods, such as by the number displayed on the display of a smart phone or other mobile computing device. In other instances, virtual payment numbers may be provided to the merchant with the numbers having bank identification number (BIN) ranges unfamiliar to the merchant. In these types of instances, merchants may be apprehensive to accept the virtual payment number for payment, suspecting fraud or an otherwise untrustworthy situation, particularly when one considers the ease of creating or replicating a number on a display. There is a perceived technical problem present in the acceptance of virtual payment numbers at points-of-sale in a face-to-face environment.
Thus, there is a need for a technical solution to process financial transactions funded via virtual payment numbers that provides merchants with added security as to the nature of the virtual payment number being a genuine payment number.